PART 3 (FINAL): AN OVERVIEW OF VIETNAMESE STEEL INDUSTRY 2014

1.      VIETNAMESE STEEL PIPE INDUSTRY

Look at the total production of  the firms belong to Vietnamese Steel Association (VSA's members) in first 11 months of 2014 was 1.0 million MT[1], estimated for whole 2014 is 1.16 million MT, total apparent consumption estimated 0.994 million MT for whole year, increasing 21% compared with last year.

Like the flat products, demand growth for steel pipe is high in 2015, estimated growth rate is 15%, according to calculation by author, anticipated consumption of steel pipes of Vietnam in 2015 will be 1.15 million MT while VSA forecast is 1.36 million MT[2].

Figure 1: Total apparent consumption of steel pipes in 2012, 2013 and provision for 2014 (Unit: MT)

 

Source: Data of 2012 and 2013 are from VSA[3]; *calculated by author

Notes: all steel pipes were produced in Vietnam are welded pipes.

Take a look at the market share of the three biggest players are leading the steel pipes market of Vietnam.

Figure 2: Market share of steel pipe sector of Vietnam in 2013 and 2014

Source: Newsletters in Nov 2013 and Dec 2014 (VSA)

Not only lead in construction steel industry (Hoa Phat) and galvanized steel industry (Hoa Sen), but also they are leading the Vietnamese steel pipe industry in recent years. Hoa Sen recently also continue to invest in a steel pipe plant with capacity 100,000 tpy in Nghe An in order to prepare for new growth step[4].

2.      VIETNAMESE STEEL INDUSTRY:  FORECAST FOR 2015

Consumption of recent years and forecasts for 2015 for the entire steel industry as following:

Figure 3: Total apparent consumption of Vietnamese steel industry (Unit: MT)

Source: All data  from VSA; Except (* ) marks calculated by author

Dinh Long

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[1] Newsletters in Dec 2014 (VSA)

[2] http://www.tienphong.vn/Kinh-Te/nam-2015-nganh-thep-chiu-nhieu-suc-ep-804763.tpo

[3] Country report- SEAISI- 2014 Conference & Exhibition- (Chu Duc Khai- Vice Presiden & General Secretary of VSA)

[4] http://www.baonghean.vn/thoi-su-chinh-tri/201410/khoi-cong-xay-dung-nha-may-ton-hoa-sen-tai-kcn-nam-cam-541110/.